The Indian stock market is expected to open lower on Friday, as investors may remain cautious after a surge in domestic retail inflation which increased expectations of tighter monetary policy and interest rate hikes.
The trends on Gift Nifty also signal a negative start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 25,252 level, a discount of nearly 56 points from the Nifty futures' previous close.
In the previous session, the benchmark indices ended with minor gains, with the Nifty 50 closing around 25,300 level.
“After the recent sharp rally, some consolidation and sectoral rotation appear healthy. We recommend maintaining a positive but selective bias, focusing on quality stocks across sectors and aligning exposure with emerging sectoral rotation,” said Ajit Mishra, SVP – research, Religare Broking.
Here are five key factors that may drive the Indian stock market today:
Asian Markets
Asian markets traded mostly higher on Friday. Japan's Nikkei 225 rallied 1.50% and the Topix gained 0.65%. South Korea's Kospi jumped 2.34%, while Kosdaq surged 3.50%. Hong Kong's Hang Seng index futures indicated a lower opening.
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Wall Street
US stock market ended lower on Thursday amid a slump in Nvidia shares.
The Dow Jones Industrial Average declined 189.40 points, or 0.36%, to 52,297.09, while the S&P 500 fell 26.98 points, or 0.35%, to 7,592.40. The Nasdaq Composite closed 100.10 points, or 0.39%, lower at 25,366.09.
India Inflation
India's retail inflation surged to 6.09% in October, breaching the Reserve Bank of India's upper tolerance limit for the first time in two years, and coming in slightly above market estimates of 6%. The consumer price index (CPI) based retail inflation rose to 5.54% in September.
Crude Oil Prices
Crude oil prices held steady after a rally as US President Donald Trump said that the US could forgo a deal with Iran. Brent oil prices fell 0.14% to $95.69 a barrel, after adding 3.3% in the previous session. West Texas Intermediate (WTI) price declined 0.25% to $88.52 a barrel.
Gold Rate Today
Gold prices traded near a one-year low on increased bets of Federal Reserve rate hike. Spot gold price rose 0.1% to $3,881.02 an ounce, after falling nearly 3% and briefly hitting a 13-month low in the previous session. Silver price rose 0.2% to $50.11.
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